Netflow

Shiba Inu is down 1.83% in its trading price over the last 24 hours. However, a relative decline in its exchange net inflow has triggered attention from investors.

According to data from an on-chain analytics platform, Shiba Inu has recorded a decrease of 154.4 billion SHIB in its overall net inflow across all supported exchanges, including Coinbase, Binance, and others.

SHIB holders show resilience

Despite the slowdown in Shiba Inu’s trading price, its exchange flows have shown a 21.83% decline, suggesting that holders have shown less interest in selling.

While this key metric signals a dramatic shift in investor sentiment, it appears that the decline in SHIB’s trading price is not entirely attributed to speculative trading. Rather, it might be the leading altcoin responding to the broader market trend.

The metric, which marks the difference between exchange inflows and outflows, suggests that the amount of Shiba Inu tokens withdrawn from exchanges is larger than the amount of tokens deposited for sale by 154,448,000,000 SHIB.

This trend indicates that many small and large SHIB holders have shown no interest in selling their holdings despite the negative price trend. Instead, they are moving their tokens into self-custody wallets to hold for longer periods.

While the decline in exchange flows stands as a bullish indicator, it aims to tighten the supply available on crypto exchanges while propelling the token toward a potential price upsurge.

Although the low selling activity could highlight strong investor confidence, it is also important to note that the slow market activity could mean that investors are trading with caution.

The sharp plunge in net flows could help stabilize the price movements of the leading memecoin, and investors are confident that the token might be set for bigger price rallies ahead.

To further build momentum for the dog-themed meme cryptocurrency, its burn activity has also surged decently by 22.98% after staying flat in previous days.

With 171,407 SHIB tokens moved out of circulation today, the resurgence in the SHIB burn rate aligns with the decline in exchange net flows, as they work hand in hand to tighten the SHIB supply while driving demand for the token.

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Sellers not ready?

Within a 24-hour period, SHIB experienced an astounding 485.6 billion SHIB in exchange net outflows, according to CryptoQuant. In other words, rather than being deposited for sale, almost half a trillion tokens were removed from centralized exchanges. This implies that both retail and whale holders are moving their tokens into self-custody, thereby lowering the immediate risk of significant liquidations. Such outflows typically tighten the supply available on trading platforms and serve as a bullish indicator.

SHIB/USDT Chart by TradingView

The technical architecture of SHIB, however, is weak. The asset is currently hovering near oversold territory at 41.99 after breaking below the triangle support and showing weak momentum on the Relative Strength Index (RSI). Additionally, there has been no significant support from the 50, 100 and 200-day moving averages, suggesting that the overall downward trend is still in place.

Exchange flows are suspicious

The resulting paradox is that exchange flows indicate a different picture than price action, which suggests weakness and a possible continuation toward 2025 lows. In spite of the unfavorable chart structure, holders appear unwilling to give up their positions. With fewer tokens easily accessible on exchanges, it increases the risk of a supply squeeze in the event that demand resurfaces without warning.

Looking ahead, SHIB is still at a turning point. The lack of exchange supply may increase upward volatility if demand even slightly increases. Notwithstanding the robust outflow data, the token might find it difficult to recover if general market sentiment stays pessimistic, especially in light of the corrections that Ethereum and Bitcoin are experiencing.

Generally, market participants are showing some upside potential on the SHIB market, but whether or not this patience results in a recovery will depend on outside demand. One thing is clear for the time being: nobody is selling.

154,448,000,000 SHIB Restores Hope as NetFlow Plunges 21%

SHIB holders show resilience

Shiba Inu (SHIB) Recorded -485,685,800,000 Crypto Exchange Netflow: Details

Sellers not ready?

Exchange flows are suspicious